As active as the cryptocurrency market has become, it still pales in comparison to other financial trading platform such as Wall Street and the Chicago Mercantile Exchange. Volatility is the main reason many investors, both individual and institutional, shy away from digital currencies. For every successful day trader who secures a Bitcoin position during a pullback so that she can capitalize on a short rally, thousands of her peers fail at such attempts.
There's another problem surrounding the cryptocurrency markets, and it is related to investor education. It almost seems as if the only way you to approach the market is by either purchasing currency pairs such as BTC/USD; the financial news media does not help in this regard because most of the headlines are centered on sensational trading volumes and market shifts. This is rather unfortunate because there are other ways for investors to profit from cryptocurrencies without having to turn into active day traders.
With the advent of decentralized finance (DeFi) technology, prospective cryptocurrency investors can make money on the various lending pools that run on the Polygon DeFi network, which is layer of the Ethereum blockchain. Curve, MakerDAO, and Compound are some of the tokens that support peer-to-peer lending at very attractive annual percentage yields.
A more interesting and fun method to invest in cryptocurrencies involves playing online games such as Axie Infinity, which offers rewards in the form of Smooth Love Potion tokens. The SLP cryptocurrency is not limited to in-game purchases; it can actually be traded for other tokens in exchange platforms such as Binance. As the cryptocurrency market becomes larger and more important to the overall economy, chances are high that the game will be able to introduce new features and rewards that will satisfy their community. With that in mind, the game’s popularity should help Smooth Love Potion gain traction. You don’t have to wait for the platform to reach a certain scale of usage before trying it; you can jump into the action now.
The next time you are reading about the price of a certain token moving up or down on some cryptocurrency exchange, think about the aforementioned options you have available to invest your money.